China to Revive Normal Use of Hedging Tool in Stock Market, Regulator Says

Market participants now “should prepare for a revival of normal trading in stock-index futures,” a top securities regulator said Saturday, signaling that China is moving closer to lifting current tough restrictions on the hedging tool to satisfy investors’ demands for better risk management.

“A more open economy requires more effective price discovery and risk management,” requiring China to build a futures market with a full set of tools, Fang Xinghai, a vice chair of the China Securities Regulatory Commission, said in a speech to a derivatives forum in Shenzhen.